Should You Borrow against your 401(k)? In this video, CERTIFIED FINANCIAL PLANNER™ Professional Colin Exelby discusses this controversial topic. Some people think 401k loans are great planning tools and others say they are horrible. Which is it? Have you ever been told never, ever borrow against your 401k? Were you taught this by your parents? Did some financial advisor tell you that? Did you ask why? In my opinion, taking a 401k loan or TSP loan can be a good call in certain situations. Mostly when money is needed quickly and the repayment period is short. Like an emergency! Stick with me, and I’ll give you the ins and outs of 401k loans, when it makes the most sense, and why you shouldn’t follow old, outdated advice! TIME STAMPS : 00:00 Should you borrow against your 401(k)? 02:51 Ways to take money out of your company retirement plan 03:58 How does the loan work? 05:23 What happens to your investments when you borrow from them? 06:26 How do you pay it back? 08:08 When should you consider using 401(k) funds? 09:23 If you are married and one spouse lost a job.... 10:04 Looking to buy a home? ★☆★ Do you really need an emergency fund? ★☆★ ★☆★ How To Navigate A Bear Market - Are We Already In Recession? ★☆★ ★☆★ How to Create a 💯 % Tax-Free Retirement Income PLAYLIST ★☆★ ★☆★ Book Your Free Consultation! ★☆★ [About] Colin Exelby is a Certified Financial Planner Professional™ or CFP®. He owns the virtual financial advisory practice Celestial Wealth Management. I provide financial planning for business owners and their families that makes sense. Transformational change is made when you focus on the big picture. My goal is to help you think outside the box about your life, your money, and your health to be the best you can possibly be. We strive to help you: *Optimize Your Cash Flow *Minimize Your Taxes *Build Your Net Worth *Create a Lasting Legacy ➡️ ➡️Free Guide Here: If this sounds like what you are looking for then hit the subscribe button right here and I'll see you in the comments! Subscribe to the Channel Here: ★☆★ ★☆★ ★☆★ Subscribe to the Blog Here ★☆★ TAGS - When Should You Take a 401k Loan? (More Often Than You May Think),retirement planning for business owners,certified financial planner,cash flow management,debt management,celestial wealth management,401k,401k loans,pros,pros and cons of 401k loans,saving for retirement,401k mistakes,retirement planning,how to plan for retirement,How 401(k) Loans Work,401k loan check,borrowing from 401k,tax planning,401k buying a house,401k plan,retirement account,retirement,certified financial planner,roth 401k,traditional 401k,tax planning,ed slott,cash flow management,debt management,celestial wealth management,roth ira,ira,custodial ira,children roth,vanguard custodial ira,million dollar roth,investing,how to save money,roth ira explained,roth ira fidelity,roth ira for baby,money life hack,planning,retirement planning,roth ira planning,business owners,2022 retirement planning,tax free retirement,How to Compute Tax on Monthly Salary | Monthly Withholding Tax on Compensation Income, Can I set my Children Up with a retirement account? Tax Free Income!, How To Create A Tax Plan For Your Retirement,Partner With The Government To Pay Zero Taxes - Robert Kiyosaki, Tom Wheelwright, and Ken McElroy,How to Pay Zero Taxes...the Easy Way,How Rich People Avoid Paying Taxes -Robert Kiyosaki,Tax Loopholes The Rich Use To Pay Zero Taxes w/ Tom Wheelwright,How to (Legally) Never Pay Taxes Again,This Is How You Can Buy Real Estate With Little or No Money - Robert Kiyosaki,investopads,How the rich avoid paying taxes,Tax Loopholes The Rich Use To Pay Zero Taxes w/ Tom Wheelwright,...(read more)
LEARN MORE ABOUT: 401k Plans
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
When it comes to saving for retirement, most people rely on their employer-sponsored 401k plan. These plans are designed to help people save for retirement by allowing them to invest a portion of their pre-tax income. However, many people don't realize that they can take out a loan against their 401k plan. In fact, 401k loans can be a useful tool to help you navigate financial difficulties and achieve your long-term financial goals. So, how do 401k loans work? Essentially, a 401k loan is a loan taken out against the balance of your 401k plan. You can borrow up to 50% of your vested balance, or $50,000, whichever is less. The money you borrow is usually paid back over five years, with interest rates similar to those of a personal loan. The primary difference between 401k loans and personal loans is that the borrowed amount comes directly from your retirement savings, and you don't need to have good credit to qualify. Many people are hesitant to take out loans against their 401k plan because they believe that doing so will hurt their long-term savings. However, 401k loans can be an excellent way to manage immediate financial needs, such as paying off a high-interest credit card or financing a significant purchase. Additionally, unlike traditional loans, 401k loans come with several benefits: -No credit check: Since the money comes directly from your retirement savings, lenders do not check your credit score, making it easier for people with poor credit scores to borrow money. -Low-interest rate: While interest rates will vary depending on your plan, 401k loan rates are typically much lower than those of credit cards and personal loans. -Flexible repayment terms: most 401k loans are repaid over five years, with repayments taken automatically from your paycheck. -No taxes or penalties: There are no taxes or penalties associated with taking out a 401k loan, provided you pay the loan back on schedule. It's important to note that 401k loans should not be taken lightly. While they can be a useful tool, they should only be used in cases of financial emergencies or when all other options have been exhausted. Additionally, if you leave your job before complete repayment of the loan, the remaining balance will be due in a lump sum, and if you fail to pay it, it will be considered a withdrawal and subject to taxes and penalties. In conclusion, 401k loans can be a useful tool to help you manage financial difficulties while still saving for retirement. While they should be used with caution, taking out a 401k loan can provide you with much-needed financial flexibility and help you achieve your long-term financial goals. https://inflationprotection.org/401k-loans-explained-you-should-take-them-more-often-than-you-may-think/?feed_id=79360&_unique_id=64165582eabf7 #Inflation #Retirement #GoldIRA #Wealth #Investing #401k #401kbuyingahouse #401kloancheck #401kloans #401kmistakes #401kplan #Borrowingfrom401k #cashflowmanagement #celestialwealthmanagement #CertifiedFinancialPlanner #debtmanagement #How401kLoansWork #howtoplanforretirement #pros #prosandconsof401kloans #Retirement #retirementaccount #retirementplanning #retirementplanningforbusinessowners #savingforretirement #TaxPlanning #WhenShouldYouTakea401kLoanMoreOftenThanYouMayThink #401k #401k #401kbuyingahouse #401kloancheck #401kloans #401kmistakes #401kplan #Borrowingfrom401k #cashflowmanagement #celestialwealthmanagement #CertifiedFinancialPlanner #debtmanagement #How401kLoansWork #howtoplanforretirement #pros #prosandconsof401kloans #Retirement #retirementaccount #retirementplanning #retirementplanningforbusinessowners #savingforretirement #TaxPlanning #WhenShouldYouTakea401kLoanMoreOftenThanYouMayThink
Comments
Post a Comment